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Diversifying B.C.鈥檚 supply chain crucial to combat negative impact of extreme weather

Spring runoff could cause continued issues for Interior residents, businesses
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Flood waters surround a farm in Abbotsford, B.C., Tuesday, Nov. 23, 2021. As B.C. heads into another summer, diversifying the supply chain can mitigate some of the economic impacts of extreme weather. THE CANADIAN PRESS/Jonathan Hayward

As temperatures warm up B.C.鈥檚 Interior, the spring runoff may cause supply chain problems.

Last week鈥檚 atmospheric river triggered memories of November 2021, when flooding wiped out parts of the Coquihalla Highway, wreaking havoc on the supply chain and delaying the shipment of goods.

The supply chain must fundamentally change to accommodate an extreme climate, said Babak Tosarkani, an assistant professor in manufacturing at the University of B.C.鈥檚 Okanagan campus.

鈥淧rofitability was the main objective when setting up supply chains,鈥 he said. 鈥淏ut from now on we need to develop a resilient supply chain, even if it isn鈥檛 as efficient.鈥

These changes take time, said Tosarkani, and in the short term, if natural disasters continue to damage critical infrastructures like roads and railways, rising costs will be apparent throughout the supply chain.

鈥淭hese costs will be distributed between all the players in the supply chain, and one of the players can be the consumer,鈥 he said. 鈥淪ince we don鈥檛 have any short-term solutions to climate change, the best thing we can do is to make our supply chain more resilient by distributing inventory in multiple locations, estimating the market demand, using intermodal transportation and partnering with multiple suppliers.鈥

This may require looking abroad to international sellers to cushion the impact of extreme weather.

鈥淚f you rely only on your regional supply chains, you cannot have an efficient economy, that鈥檚 why we rely on products from international suppliers as well,鈥 said Tosarkani.

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Expanding the network to rely on different forms of transport will also help.

鈥淚nstead of relying on one mode of transportation, if we use other modes of transportation like transporting by train or by truck we can rely on more suppliers,鈥 he said.

The has already issued several warnings, and the province is investing heavily in flood and .

鈥淔ollowing the extraordinary work that was done to reconnect these highways in December, we鈥檙e building back permanent infrastructure that will be equipped to better withstand the impacts of climate change and future extreme weather events,鈥 said Rob Fleming, Minister of Transportation and Infrastructure.

Despite the changes, there will be challenges ahead.

鈥淚t鈥檚 a cultural issue that I think people are gradually getting used to,鈥 Tosarkani said. 鈥淚nstead of just focusing on saving costs and the profitability of the supply chain, we will focus on its resiliency.鈥

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